max kaiser welcome to the kaiser report you know in the old days back when bankers had the decency to jump shady businesses used to fly by night today shady businesses fly by day no contest to brazen no theft to audacious for today's ponzi and fraud economy the private and central bankers operate in broad daylight stacey max it's all out there for you to see it's not very difficult to see what's going to happen this fiscal cliff is actually in economic and central banking banks are banking cliff that we're approaching the first headline max database confirms max keiser guessed statement so this is regarding dominic frisby when he told you the story of having dinner with the head of gold at h.s.b.c. through which most gold in the world is transferred at some point or other and this head of gold at h.s.b.c. told him that despite the fact that china is the biggest producer he never sees bars with the chinese stamps on them so the bully on bar is database search found

that in the database i found zero matches for chinese manufactured gold bars in the g.l.d. records and also extended the query to see if other vaults had any i was mildly surprised to find none surprising because our current gold sample size includes data from not just h.s.b.c. london vault but also royal canadian mint and via mat london hong kong in zurich that's right china is not putting any of their gold into the marketplace they are keeping it off for themselves and you mentioned fiscal cliff the fiscal cliff of course is the culmination of years and years of failing to take responsibility for a rogue economy that they're going to try to reconcile all at once when the entire population of america jumps off the fiscal cliff whether they do so the next two months or six months or twelve months is irrelevant that fiscal cliff is coming the gold cliff is also coming and it's something that i think people need to be aware of that's right well actually that takes us to this next said i'm. x.

gold reserves stored securely so after decades of trying the buddhist bank actually has responded to all the queries from data from large scholl from max kaiser they actually give a list of where their gold is stored and they say that despite frankfurt has one thousand and thirty six tons or thirty one percent of germany's gold the federal reserve bank of new york has one thousand five hundred thirty six tons or forty five percent of all of germany's gold bank of england has four hundred fifty tons or thirteen percent bank to france has three hundred seventy four tons or eleven percent well that's not going to return to germany because as you head to the cliff whether stuff fiscal cliff or the bond cliff the gold held in america on behalf of germany will not be returned but germany knows this and that's why germany is ransacking the economies of europe right now because they have their eye on the gold in greece for example granted

a pledge on an eleven tons of gold to germany when they signed off on the memorandum to become beholden to the troika when they lost their sovereignty it only has twenty four hundred tons of gold i predict that italy will have to put that gold into the coffers of germany so germany is playing a game here where they are bankrupting europe by cutting off the credits may get in return these countries will have to forfeit their gold and this is the way the gold wars are going to unfold and in your opening you mentioned private banks theories and central banks terrorist central bank and banks and the private banks get away with their crimes they the word they use to cover up all their crimes as you've mentioned is market making the central banks as you see here they always use the word liquidity that's what their crimes are it's just liquidity operations and this is what the buddhist bank says here as well as why they have all their gold.

overseas is basically for liquidity operations yes this is one of the canards is by banks whether it's market making or liquidity it's terms that are used to cover some basic underlying crimes and of course the one country in the world with the absolute worst position with the common cold war is britain who gave away half of its gold it's got roughly three hundred tons of gold it's one of the lowest gold positions in the world and britain at some point will have to go into the open market and start buying gold bullion i think that will shock a lot of people i think that's perhaps why the buddhist bank does admit that from about two thousand they did repeat three nine hundred thirty tons of gold that was held here in london so perhaps they saw what gordon brown was doing and they were alarmed and thinking well surely when the crisis hits he's going to go looking for somebody is gold right when when gordon brown during the creation of the arab euro sold half of britain's gold supply three hundred tons at two hundred fifty dollars an ounce and worst price for decades germany started to think about this coming

gold war they repatriated a lot of their gold however many tons of their gold more than two thousand tons of their gold is still held outside of the country and still in the foreign hands that's not safe in those hands and i think they knowing this from two thousand they've known that they had to set up a situation where they go and raided the gold of italy is really the product in ten or twenty four hundred times i believe germany will make a move on italy's gold mark my words when then in the next twelve to eighteen months well the bundesbank goes on on the website they say they're going to audit this school they're actually going to go and audit and they're going to repatriate one hundred fifty tons of the next three years but then they go on to say but please for years our goal has been stored by the highly esteemed central banks of the united states great britain and france without provoking any complaints whatsoever not by just any fly by night operators. part of the debate in germany

has veered somewhat towards the absurd their actions belied their words this is their rhetoric they put out there but their actions are their madly attempting to scramble to repatriate their gold because they know that the us has become a rogue banking state of kleptocrats that are printing money in the us it's printed twenty five trillion dollars in government paper the global central banks have printed hundreds of percentage of their g.d.p. number in more sovereign bonds the total indebtedness around the world is in the hundreds of trillions of dollars of sovereign bonds during the past few years what's the total supply of gold in the world how is that increased eight percent maybe at best so they realize that when the fiscal cliff when the global bomb close occurs one while the coyote finds himself looking down into the canyon and that road runner has only beat beat to say they're going to look for their parachutes of

gold which unfortunately in many cases do not exist the fly by night operations as he said in the opening it's now fly by day openly do you know ben bernanke you flies this helicopter in broad daylight that's what quantitative easing is it's a fly by day operation they're letting everybody know that they're engaged in a brazen con but on the other hand fly by night is also you know indicative of a shaky operation that might just fall apart at any moment and that's suddenly you know underneath it all is what is really happening is these currencies the us dollar the euro zone these are fly by night operations they could fall apart and united they could just disappear overnight you wake up in the morning you say hey you know i'm owed ten thousand bucks bernanke actions are to defer it to another day the tragedy of having a worthless currency again the cliff metaphor whether it's a fiscal cliff or a gold cliff the people in athens sewer. protesting who are taking an action

against the government their only concern in grace hello grace your only concern should be to hold onto your gold because that's the only thing left when the global economy implodes you've got an eleven tonnes the troika says and that they now own your gold. you can't let them steal your gold the same thing and italy the occupy wall street people are don't they should go down to the federal bank of new york the reserve bank that's a new york that chapter in new york and demand their gold that's all about matters heading into this paper apocalypse well just as important as gold which is important to a nation and the sovereignty of a nation is for the individual as we've said for years here is silver and that's the silver liberation army it seems to be picking up steam in asia you know all you occupy wall street people you didn't fail to join in and join the revolution but in

china silver demand in china for wealth protection to climb to record seven thousand seven hundred tons so bloomberg has reported that silver demand in china is expected to be up ten percent next year that's after being up fifteen percent this year and they did note that a lot of it is due to quantitative easing so here these chinese people see the quantitative easing going on in the u.s. and across europe and after the u.s. fed's q e one from december two thousand and eight to march two thousand and ten silver rocketed fifty three percent almost twice the jump as gold and for q e two and in june two thousand and eleven silver rose twenty four percent and morgan stanley predicts that silver will again return more than gold after q e three was announced this september well here's a handy guide for chinese people or anyone for that matter but the chinese people they have a saying in china that you should own your weight in gold or in this case over so if you weigh one hundred eighty pounds you should own a hundred eighty pounds of silver so that should be

a guide going forward anyone who doesn't have their way and sober and will find themselves in the casino. eating monsanto created genetically modified slop and having to watch cable t.v. news all day long well. we must be a very big man because here is a. guy who is the president of who. we rare and precious metals recycling and he says i'm bullish on silver so i personally have stopped piled three tons of it at home that's a good role model you should look several hundred pounds of silver at the bare minimum or paint the paper apocalypse and you've got the four horsemen the paper apocalypse right here the biggest four banks in the u.k. that are aiding and abetting this entire. nomi of fraud which has yet to hear if you thought the two thousand and eight crisis was bad that was just a warm up act here i showed you that the chinese are piling into silver over in the

us thirty three times you poor dumb bastards this is from the reformed broker max and he says since december two thousand and seven investors have poured more than one point one trillion dollars into bond mutual funds in exchange traded funds more than thirty three times the amount allocated to equity funds and e.t.f. so many institutions have also reduced long equity allocations look to people only in america the dumb country they say that gold is in a bubble. ok let's talk about the u.s. government ten year bond never in two hundred thirty eight years as the price been higher the u.s. government bond is in a two hundred thirty year high that is a ball ball and all of these any it's out there they're buying stockpiling all kinds of provisions against a big storm a big storm coming last by next to a loaf of bread meanwhile their entire net worth being visser

a nit by the paper pushers and how much gold and silver they own zero no. clue. who well investors famously always do pile in on that third leg of any bull market when it's routes into a bubble and now josh brown downtown josh brown he says there's going to be such a brutal bond investor slaughter at some point over the next decade that the streets of boston's mutual fund district will run red with blood the skies will be shot through with the lightning and thunder of unexpected capital losses and those who manage to survive well envy the dead well just brown what a wordsmith of course in this case he's absolutely correct mistakes here but thanks so much for that since the latest report here on the kaiser report thank you max don't go away stay tuned for the second half of it talking to john butler.

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soon from phones to. screen starts on t.v. . as are welcome back to the kaiser report time out of turn to john butler c i o m four a capital and author of the golden revolution john welcome to the kaiser report thank you max all right john bowler. let's talk about the bonus bank most assume that the legendary central bank has been sidelined to a more powerful european central bank this is true well it is up to a point and i think it's important to understand that the bundesbank remains to this day a very unique central bank it's the most independent in the way it was set up and designed and the powers that it supposedly gave to the e.c.b. and certainly did in a formal legal way the powers it gave to the e.c.b. to get the new ruling do not in fact circumscribed other powers and or give me the

single most important one of those is simply the rule of the bundesbank plays in german culture and this should not be downplayed when the bundesbank objects to something in this case for example with the e.c.b. is recommended with respect to bailouts that resonates in germany in a way that a similar statement by a central bank in other countries such as the us or the u.k. simply would not resonate to the bundesbank is almost revered i don't think that's too strong a word the word on the street and is that the bonus bank is taking exception with the c b a because the c b s down in bed with the i.m.f. the world bank and these other global institutions and what the bundesbank fears and what the people of germany fear is that germany will lose its sovereignty just like greece has lost its sovereignty italy is on its track to lose its sovereignty ireland has lost its sovereignty portugal has lost its sovereignty so the people of germany are afraid that the e.c.p.a. israeli and bed of these global institutions which of course the i.m.f.

is part of the. federal reserve bank of the american bank so they fear ceding sovereignty to these foreign governments and there seems to be a lot of tension along those lines given the trends that we see isn't that fear justified i think it is justified in fact when you see the bundesbank position portrayed in the media they talk about it the george c. of it as if they're isolated though nobody agrees with them but that illustrates the point all these institutions you just mentioned there. pushing the same for lack of a better word globalist agenda taking sovereignty not just away from potentially the weaker euro area sovereign countries who do need help you could say but also the strongest of all including germany and how do the germans feel about that well they have a natural suspicion of it to begin with and know their own as i used the word a moment ago revered as it were buddhist bank is warning them that this process has already gone too far that there are certain powers that they should not give to the

e.c.b. they should not give to brussels the powers of the bailouts you use the word globalist and this is a word that is popping up more and more where five years ago you would hear the word globalist or new world order you know over there in america alex jones my friend alex jones and people at that time would say oh alex you're a conspiracy theorist but yet now governments around the world are expressing a fear of this emerging global government governance and the case of the i.m.f. the world bank the e.c.b. it is there any what are your thoughts on this john boehner the the idea that the sovereign bond market is in as unsustainable they they they are adding more into the market they're continuing to roll up these bonds issued more bonds supply bonds increasing maturities are being extended. edition alay in the past the central

banks have been the last resort lender of last resort and they're totally over him burdened with toxic securities now is there any validity to the idea that the i.m.f. made the d c b a and others will create a kind of a global lending facility to supersede all of these central bank lending facilities to try to roll up all this bad debt once again maybe back it with a new global currency like a special drawing right i know that's a lot to take in but it is disco but it confound like that. another's this is what they talk about her and this are your thoughts so absolutely i mean this goes back to the nineteenth sixty's the s.d.r. as if it's some day theoretical dollar replacement reserve currency well that's been openly debated in elite policy circles since the one nine hundred sixty s. and in fact when friends with drew from the london gold pool and expressed its displeasure at the entire bretton woods arrangements goal made his statements with his advisor jack roof sitting behind him and jack roof was making the point back

then that the dollar reserve standard was not in france's interest but also a theoretical globalist s.d.r. standard would not be in france's national interest and you're starting to see a similar collision of national interests today and this internationalist agenda which yes in theory could create a new currency which could be printed it will by some collection of governments and which would be presented of course to the world as some wonderful solution to all these problems we have well i would argue and in fact i do argue in my book it would make these problems even worse ok i saw those focus on germany here so let's say the people of germany they finally figure out that their sovereignty is being flushed down the toilet and they make a movement toward leaving the euro so this is one scenario that is the least talked about scenario people die by greece leaving the arrow they never talk about maybe germany leaving the euro they stay in the euro because because of these problems periphery countries the euro is relatively cheap cars germany's next morning

powerhouse and they benefit from that but if the burden of the loss of sovereignty becomes a stark reality then they would be potentially thinking about leaving the euro what how that scenario play out again if you look at history the fact is germany as a country has been willing on multiple occasions to allow its currency to become very very strong relative to its trading partners it might have caused a recession it might have caused some economic hardship but germany. survived and in fact would innovate and produce its way from strength to strength export again find some export channel and would continue to grow in germany has a demonstrated track record of surviving with a strong currency now the germans are not only aware that they've had a strong currency through the decades there where they have outperformed as an economy despite the strong currency or perhaps because of the strong currency again the germans revere the bundesbank many of them are still long for the days of the deutsche mark which was so widely regarded around the world and didn't have any of

these uncertainties institutional european euro crap uncertainties associated with the euro currency many of them never wanted the euro in the first place and now the buddhist bank itself is sounding the alarm that perhaps this road to bailouts they're down so for already that they're doing potentially serious damage to the credibility of the german institutions that are being sacrificed as it were for the european project somebody in germany is starting wake up to this because they're starting to repatriate their gold they're nervous about their gold it's held overseas apparently during the when gordon brown sold half of britain's gold germany repatriated a large amount of tonnage from the u.k. thinking that the world gone mad and so on their website the bonus bank of explains that the reason they hold forty one percent of their gold reserves in new york quote the gold held the new york fed ken in a crisis the pledge with the federal reserve bank as collateral against u.s.

dollar denominated liquidity now this contradicts ben bernanke you stated to congress in which he claimed it was nothing more than a tradition or a trinket to hold gold never bernanke he thought gold was something that indians accumulate on wedding day as as a trinket but he doesn't give it any monetary or value whatsoever here you have germany clearly ringing the alarm bell what about this recall that held in new york some would argue including james records who's a respected author. guest on the show that the u.s. will will not allow germany to take back their gold as the paper money apocalypse occurs you have a debasement around the world and gold is king once again your thoughts if you look at history gold has been used not only as a medium of exchange and money it's also been used as an instrument of national economic policy and indeed that borders on national security at certain times it is entirely conceivable that not just the united states but any country in

a crisis severe enough in a confrontation severe enough would seek to nationalize gold that it held on a custodial basis i think that is a potential if somewhat extreme risk let's keep in mind why was that gold or why is that gold presumably beneath the federal reserve in manhattan it's the legacy of bretton woods and once upon a time under bretton woods when countries were settling balance of payments literally people would walk boards of gold from one country's locker to another country's locker underneath the federal reserve so there was a convenience factor that you're blamed it germany is saying that that convenience factor is why they don't want to move it back to germany which it doesn't make sense now because we no longer have a gold backed monetary system there is no convenience or human really to be made and i agree it sounds a bit odd it's simply the legacy of bretton woods numerous other countries have repatriated at least some portion of their bretton woods gold france being the clear sort of champion of doing that they did it years ago but most other countries have maybe taken a little bit back germany's taken none why it does look

a bit odd plus all the gold that they supposedly have on behalf of germany that's on mark there's a certain number of those up our numbers but let's talk about actually as a c. . chief investment officer ok you are obviously master of the cash flow and the balance sheet and the bond market this is your act your area of expertise more than anything else so talk about the thirty year bull market and treasury bonds how many more decades will that be going on well it's interesting that. thirty year bull market in treasury bonds actually began during the gold mania of the late seventy's early eighty's when many people including alan greenspan speculated that the united states would have to restore gold conferred ability to stabilize the dollar even alan greenspan had gone that far by that time so thirty years on well obviously we haven't done a great job at restoring confidence in the dollar have way we look at what's going on with the financial system and therefore of course everyone is fleeing into treasuries which yield only whatever one of the half percent these days below the

rate of inflation as officially measured other people measure is way below the rate of inflation you use the word flee and. or fear and bubbles can be created by fear just as easily as they can be created by greed so in the case of let's say the dot com bubble famous dot com bubble burst i was agreed based bubble here with the bond market from what i hear what you're saying here is people are fleeing they're frightened by the geo political politics of our era they're frightened by the financial crisis they're frightened by everything that's going on there they're they're in fear they're buying bonds and driving that bond prices in america really is not a two hundred forty year high but the bond prices and never been higher in american history going back to the revolutionary war it mean that sounds like a bubble it does sound like a bubble that said if treasury bonds truly offered a fail safe form of financial insurance insurance against banking crises insurance

against sovereign defaults insurance against you name it then you could argue that in fact it is really where fear belongs but do treasury bonds offer a safe haven against dollar devaluation no do they offer a safe haven against the fed monetizing ever more debt no to the offer a safe haven against the u.s. at some point throwing its hands up and defaulting on some portion of its bonds restructuring some portion of its bonds for some political reason i don't know the fact is the risks are there they're not there was something physical and tangible that cannot be printed or diluted it. we'll such as gold other precious metals or for that matter commodities in general all right john butler going to leave it there thanks so much for being on the kaiser report thank you max all right that's going to do it for this edition of the times report with me max kaiser and stacy herbert ever think my guest john butler because i'm an email please do so at kaiser report at r t t v dot are you going to like timex guys are saying oh no.

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. government no longer represents the. people are going to take. away our economic system currently is.